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John Boehner Pretends He Isn’t Speaker Of The House

Perhaps my favorite GOP response to the downgrade announcement came from the Speaker of the House.

Said House Speaker John A. Boehner (R-Ohio): “Democrats who run Washington remain unwilling to make the tough choices required to put America on solid ground.” He quoted the S&P report as saying that reforming entitlement programs is necessary, but he did not mention its discussion of the potential need for new tax revenue.

This is almost beautiful, in a comedic sort of way.

First, S&P blamed Boehner’s hostage strategy for the downgrade, so Boehner trying to shift the blame elsewhere is cheap and cowardly. Second, Dems were willing to make all kinds of “tough choices,” but found Boehner was too weak to persuade his own caucus to compromise.

But that’s just routine nonsense. What I especially enjoyed is the notion that, from Boehner’s perspective, Democrats “run Washington.”

I’ve noticed the Speaker has referenced that wording a few times recently, so I checked Boehner’s own website to see how many times the Speaker’s office has used the phrase. I found over 3,000 results. For a guy who’s only been Speaker for seven months, it suggests this is a phrase Boehner absolutely loves.

There is, however, one small problem, which Boehner may have lost sight of: he’s the elected Speaker of the House of Representatives. He was able to become Speaker because Republicans enjoy a House majority.

And if Republicans enjoy a House majority, it necessarily means Democrats don’t “run Washington.”

This need not be complicated. When Boehner goes to work, does he see the Secret Service agents around him? Does he notice where it says “Speaker of the House” above the door he walks through? Does he realize when President Obama negotiates with him, it’s not because the president enjoys Boehner’s company?

Obviously, I get the point of the little rhetorical exercise. Washington is unpopular, so Boehner wants voters to blame the party that “runs” things in DC. But as rhetorical games go, this one is just pathetic, even by GOP standards.

By: Steve Benen, Contributing Writer, Washington Monthly- Political Animal, August 8, 2011

August 9, 2011 Posted by | Congress, Conservatives, Debt Crisis, Democracy, Democrats, Elections, GOP, Government, Ideologues, Ideology, Politics, Republicans, Right Wing, Standard and Poor's, Tax Increases, Tax Loopholes, Taxes, Teaparty, Voters | , , , , , , , | Leave a comment

Why Does Bigot Pat Buchanan Still Wield Influence?

For a number of years, Patrick J. Buchanan was considered “The Man” in the conservative movement; he took a back seat to no one. He ran for the GOP’s presidential nomination and attracted a large following; he hosted and appeared on several cable news shows, including being one of the original co-hosts of CNN’s “Crossfire”; his books have been bestsellers; and, perhaps most famously of all, Buchanan’s “Culture War Speech” at the 1992 Republican Party convention both enthralled his followers and chilled a good part of the rest of the nation.

In a recent column about the events in Norway, after a perfunctory condemnation of the bombing and murder spree unleashed by Anders Behring Breivik, Buchanan was classic Buchanan suggesting that, “Breivik may be right.”

Over the years, as Jamison Foser recently pointed out at Media Matters for America, Buchanan has expressed an, “almost unbelievable dislike of Nelson Mandela and Rev. Martin Luther King, Jr.”; took up the cause of John Demjanuk, who was”convicted earlier this year of complicity in the murder of tens of thousands of Jews while serving at a Nazi death camp”; defended the white supremacists beliefs of Nixon’s Supreme Court nominee, Harold Carswell; and,”praised Klansman David Duke for his staunch opposition to ‘discrimination against white folks.'”

In a June column posted at CNSNews.com, titled “Say Goodbye to Los Angeles”, Buchanan commented on the June soccer match at Pasadena’s storied Rose Bowl that saw the Mexican team beat the U.S. He wrote that fans rooting for Mexico should consider returning there and they should”let someone take his place who wants to become an American.”

Buchanan pointed out that “By 2050, according to Census figures, thanks to illegals crossing over and legalized mass immigration, the number of Hispanics in the U.S.A. will rise from today’s 50 million to 135 million.” Never one to miss an opportunity to be excessively dramatic/hyperbolic, Buchanan concluded: “Say goodbye to Los Angeles. Say goodbye to California.”

When Pat Buchanan spoke, many may have turned their heads, but his core audience, anti-immigrant, white nationalists perked up and listened, and later echoed his remarks.

Despite the reams of “culture war” commentary, including anti-immigrant, anti-Semitic and anti-gay rage, for some inexplicable reason, the Washington Beltway crowd has always considered him”a good old boy.”

“A cutting edge figure among a significant sector of extreme paleoconservatives”

“Although Buchanan doesn’t have the influence he did in the 1990s when he commanded a following inside the Republican Party, he remains an influential, even cutting edge figure among a significant sector of extreme paleoconservatives,” Leonard Zeskind, president of the Institute for Research & Education on Human Rights told me in a telephone interview.

“His ideas may not be adopted outright, but they find their way into the mouths of others, that do have a following,” Zeskind, author of the invaluable Blood and Politics: The History of the White Nationalist Movement from the Margins to the Mainstream, added. “Think of him as a cutting edge figure, with a following on television news and an influence on others who have larger followings,” said Zeskind.

Buchanan Hearts Breivik

Buchanan’s column about Breivik may in part be an attempt to grasp renewed relevance. The piece, “A fire bell in the night for Norway,”which was posted at WorldNetDaily, maintained that Breivik is an, ” evil … though deluded man of some intelligence, who in his 1,500-page manifesto reveals a knowledge reveals a knowledge of the history, culture and politics of Europe.” Breivik, perhaps unknown to Buchanan, also revealed an ability to purloin a chunk of the manifesto from other published sources and claim them as his own.

“He admits to his ‘atrocious’ but ‘necessary’ crimes, done, he says, to bring attention to his ideas and advance his cause: a Crusader’s war between the real Europe and the ‘cultural Marxists’ and Muslims they invited in to alter the ethnic character and swamp the culture of the Old Continent,” Buchanan maintained.

Now that the “atrocious” deed has been done, Buchanan is, as many other conservatives have been doing, attempting to disassociate Breivik from the conservative movement in the United States and Europe: “His writings are now being mined for references to U.S. conservative critics of multiculturalism and open borders. Purpose: Demonize the American right, just as the berserker’s attack on Rep. Gabrielle Giffords in Tucson was used to smear Sarah Palin and Timothy McVeigh’s Oklahoma City bombing was used to savage Rush Limbaugh and conservative critics of Big Government.”

But, Buchanan wrote, the left will not get away with “guilt by association,” a methodology Buchanan charged, “has been used by the left since it sought to tie the assassination of JFK by a Marxist from the Fair Play for Cuba Committee to the political conservatism of the city of Dallas.”

While Buchanan admitted that there are, “violent actors or neo-Nazis on the European right who bear watching,” he declared that “native-born and homegrown terrorism is not the macro-threat to the continent.”

According to Buchanan,”Europe’s left will encounter difficulty in equating criticism of multiculturalism with neo-Nazism. For Angela Merkel of Germany, Nicolas Sarkozy of France and David Cameron of Britain have all declared multiculturalism a failure. From votes in Switzerland to polls across the continent, Europeans want an end to the wearing of burqas and the building of prayer towers in mosques.”

Buchanan concluded by pointing out that “Breivik may be right,” in asserting that “a climactic conflict between a once-Christian West and an Islamic world that is growing in numbers and advancing inexorably into Europe for the third time in 14 centuries,” is coming down the pike.

Buchananism “will live long after [he] has departed this mortal coil’.

“Buchanan’s brand of Christian nationalist xenophobia has been picked up by others, guaranteeing it will live on long after Buchanan has departed this mortal coil,” Rob Boston, Senior Policy Analyst at Americans United, told me in an email. “That’s his true legacy. … The trail he blazed is now well traveled by Ann Coulter, Sean Hannity, Glenn Beck, Rush Limbaugh, Dinesh D’Souza and a host of others.”

Boston noted that: “The Breivik shooting is a textbook example of what’s wrong with today’s cultural warriors of the far right. An angry and hate-filled man killed more than 70 people — many of them young — in cold blood. Yet so many on the right seem unable to condemn this without adding a ‘but.’ That we have come to this pass — and that so few public commentators have the guts to stand up and call the right out for the cranks that they are — is a telling indicator of the great moral confusion these so-called guardians of public virtue have spawned.”

Leonard Zeskind pointed out that while Buchanan is not the Buchanan of the past, he still has a following: “Even if he does not have three million votes behind him, he still has [many] people who listen to [him] everyday. At the same time, he has been eclipsed by the Tea Partiers, who embody, in part, his constituency of yesteryear.

The Tea Partiers are the Buchananites of the past, moving into the future.”

By: Bill Berkowitz, Talk To Action, AlterNet, August 5, 2011

August 8, 2011 Posted by | Bigotry, Birthers, Conservatives, GOP, Human Rights, Ideologues, Ideology, Immigrants, Republicans, Right Wing, Teaparty, Terrorism | , , , , , , , , , , , , , , , , , , , , , , , , , , , , | Leave a comment

Sign Me Up: Why I Support “The Ronald Reagan Tax Reform Act of 2011”

Ten years ago today, the wealthiest Americans caught a multi-billion dollar break from their benefactor, then-president George W. Bush. In the decade since, through two wars, natural disasters, a plummeting economy and a soaring debt, the wealthiest Americans have gotten to keep those Bush tax cuts. Happy birthday, everybody!

As the Republican Party now lines itself up behind Rep. Paul Ryan on his mission to cut the resulting deficit on the backs of working people and the elderly, I find myself surprisingly and strangely nostalgic for another GOP hero, whose legacy, at least when it comes to taxes, has become woefully misunderstood. Can it be that I find myself nostalgic for Ronald Reagan?!

Of course, I’m not alone in my nostalgia. I’m joined by the entire Republican leadership in this, but I think our reasons may be quite a bit different. In the spirit of unity, I’d like to suggest to Republicans in Congress that they look closely at the record of their favorite 20th century hero and adopt yet another policy named after the Gipper. I’m no fan of much of President Reagan’s legacy, but in a new spirit of bipartisanship, and historical accuracy, I’d like to present Republicans in Congress with an idea: the Ronald Reagan Tax Reform Act of 2011.

A key element of the Reagan lore believed by today’s GOP is that Reagan’s embrace of “trickle-down economics” is what caused any and all economic growth since the 1980s. In fact, after Reagan implemented his initial tax-slashing plan in 1981, the federal budget deficit started to rapidly balloon. Reagan and his economic advisers were forced to scramble and raised corporate taxes to calm the deficit expansion and stop the economy from spiraling downward. Between 1982 and 1984, Reagan implemented four tax hikes. In 1986, his Tax Reform Act imposed the largest corporate tax increase in U.S. history. The GDP growth and higher tax revenues enjoyed in the later years of the Reagan presidency were in part because of his willingness to compromise on his early supply-side idolatry.

The corporate tax increases that Reagan implemented — under the more palatable guise of “tax reform” — bear another lesson for Republicans. The vast majority of the current Republican Congress has signed on to a pledge peddled by anti-tax purist Grover Norquist, which beholds them to not raise any income taxes by any amount under any circumstances, or to bring in new revenue by closing loopholes. This pledge, which Rep. Ryan’s budget loyally adheres to, in effect freezes tax policy in time — preserving not only Bush’s massive and supposedly temporary tax cuts for the wealthiest Americans, but also a vast mishmash of tax breaks and loopholes for specific industries won by well-funded lobbyists.

The problem has become so great that many giant American corporations have become so adept at exploiting loopholes in the tax code that they paid no federal income taxes at all last year — if Republicans in Congress follow their pledge to Norquist, they won’t be able to close a single one of the loopholes that are allowing corporations to avoid paying their fair share.

Even Reagan recognized the difference between just plain raising taxes and simplifying the tax code to cut out loopholes that subsidize corporations. In 1984, he arranged to bring in $50 billion over three years, mainly by closing these loopholes. His 1986 reform act not only included $120 billion in tax hikes for corporations over five years, it also closed $300 billion worth of corporate loopholes.

These kinds of tax simplification solutions are available for Congress if they want them. As I wrote in April, nixing Bush’s tax cut’s for the wealthiest Americans would help the country cut roughly $65 billion off the deficit in this year alone. Closing loopholes that allow corporations to shelter their income in foreign banks would bring in $6.9 billion. Eliminating the massive tax breaks now enjoyed by oil and gas companies would yield $2.6 billion to help pay the nation’s bills.

But before Republicans in Congress change their math, they have to change their rhetoric — and embrace the reality of the economic situation they face and the one that they’d like to think they’re copying. In 1986, during the signing ceremony for the Tax Reform Act, Reagan explained that “vanishing loopholes and a minimum tax will mean that everybody and every corporation pay their fair share.”

It’s time for the GOP to take a page from their hero’s playbook. If they do so, they might be able to find some allies that they never thought possible. It’s time for “everybody and every corporation to pay their fair share.” We can all get along. Sign me up for “The Reagan Tax Reform Act of 2011.”

 

By: Michael B. Keegan, President: People For the American Way, Published in HuffPost, August 7, 2011

August 7, 2011 Posted by | Congress, Conservatives, Corporations, Democracy, Economic Recovery, Economy, GOP, Government, Ideologues, Ideology, Income Gap, Jobs, Lawmakers, Lobbyists, Middle Class, Politics, Republicans, Right Wing, Tax Loopholes, Taxes, Teaparty, Unemployed, Wealthy | , , , , , , , , , , , , , , , , , | Leave a comment

Standard And Poor’s Goes Tea Party

Big headlines for a Friday night: “U.S. Loses Top Credit Rating!” Yes, as most now know, Standard & Poor’s went ahead with its warnings of the past weeks and downgraded the sovereign debt of the United States government from its pristine triple-A to a still stellar but one notch less so AA+. And after a miserable week in global equity markets that was almost as ugly as it gets, a week that began with the conclusion of a universally reviled debt-ceiling deal, the late-night downgrade was the fitting end.

The symbolism is undeniable. This is the first downgrade in history, as commentators rushed to remind us. But of course, that history goes back only to the late 1930s, when the ratings agencies began to hold sway. And S&P is the only one of the major three—Fitch, Moody’s, and S&P—to downgrade. So this was big bad news, a bad coda to a bad week, but only as news and not as a trenchant analysis of the creditworthiness of the United States or its ability to meet its debt obligations going forward.

Let’s be clear: Congress and the White House did not cover themselves with glory during the debt debate throughout July. The United States has a stalled economy and a large amount of debt. But on so many levels, this downgrade is absurd.

First there is the question of math. When S&P informed the White House of its intention to downgrade on Friday afternoon, the Treasury Department took issue with S&P’s math and claimed that their assessment of the trends of the U.S. debt burden and its ratio to GDP was off by trillions of dollars. No matter. After a brief review, the wizards at S&P went ahead and removed an A.

A news ticker reads “Standard & Poor’s downgrades US credit rating from AAA to AA+” in Times Square on August 5, 2011 in New York City., Andrew Burton / Getty Images

Second, what’s with the fetish for a so-called proper ratio of debt-to-GDP. Academic economists have done no favors here. Carmen Reinhart and Kenneth Rogoff have become the go-to economists for their work showing how countries that reach a 90% ratio slide into recession and see slowing growth well before. The U.S. current level according to S&P is 74% and will rise to 85% by 2021. The explanation of the downgrade closely tracks this academic logic.

I have no criticism of an academic theory about how nations function economically. But when debatable theories become the underpinnings of decisions by unelected individuals who run organizations with significant sway (sway ceded to them by governments throughout the 20th century), then we have a problem. We have a problem when that argument gives short shrift to the debt-servicing burden. The current interest rate that the U.S. government pays to service its massive debts is hovering around 2.5%, which makes interest payments as a percentage of GDP as low as they have been since the mid-1970s.

Servicing the debt does not enter into the analysis, yet that and current interest rates make all the difference. Dismissing that counterargument, warning that rates will of course rise (yet even if they double, that will still leave the U.S. more than able to meet its obligations), and drawing on theories about the “right” level of debt puts S&P in a strange bedfellow alliance with the Tea Party.

The people who run the ratings agencies are welcome to their analysis, as is the Tea Party. But if Rogoff and Reinhart or the Tea Party announced that they were downgrading U.S. sovereign debt, they would be laughed for their audacity. Yet when it is one of the anointed ratings agencies, there is this sudden need to genuflect.

This is largely because covenant after covenant in both SEC rulings and institutional money management (pensions especially) dictate that many types of capital can only be invested in credit-worthy instruments as determined by Moody’s, S&P and Fitch. The downgrade doesn’t remotely begin to threaten the “investment grade” status of U.S. debt, and there is little reason to suspect that borrowing costs will go up as a result. Still, the reason we are in this situation of having to genuflect to S&P is because an entire structure of credit and investments, and the issuance and purchase of bonds above all, has been built on the shaky and questionable foundation of the ratings agencies.

The worst part of the downgrade is this: S&P spent considerable time in the body of their explanation about debt and GDP and growth. But they didn’t lead with that. That wasn’t the kicker. No, this was: “the downgrade reflects our view that the effectiveness, stability, and predictability of American policymaking and political institutions have weakened at a time of ongoing fiscal and economic challenges.” The company assailed the Washington culture of “brinkmanship” so in display during the debt ceiling fiasco, and used that as the primary reason to take us down a notch.

Excuse me, but since when is a pristine political process a key ingredient to good credit? Are we supposed to have civil politics in order to maintain the rating? Are we supposed to have some mythic Scandinavian concord? Washington has usually been a mess, and arguably more now than ever. Nonetheless, the great distortion of the debt-ceiling imbroglio was that failure to do a deal would have led to a default. It would have led to a partial and then increasing complete shut down of the government, which would have soon enough forced a resolution. At no point would there have been insufficient tax revenue to meet the $20 billion of so in monthly interest payments on the debt, unless the crisis had gone on for months and months, which barring collective national psychosis simply could not have happened.

So S&P doesn’t feel comfortable that the American political process is conducive to dealing with long-term debt issues and so issued a downgrade. Yet S&P is a ratings agency, not a political arbiter. Olympic judges rule on athletic aptitude, not the politics of the athletes (usually). There is not a scintilla of evidence that the political process has yet impeded the ability of the United States to meet its debt obligations, even with the debt ceiling brinkmanship. The political process may indeed be contributing to the morass of the American economy, but the larger causes are the challenges of emerging economic centers and changing patterns of global commerce. Those are long-term issues that have little bearing on current ability to manage debts.

Finally, as a symbol that the United States is sliding off the rails, the downgrade is potent. It’s hard to argue with the reality that America is in a challenging moment that looks and feels a lot like decline. Whether that proves false and a new dawn awaits, we’ll find out soon enough. But the actions of S&P are part of problem and not just an independent verification that one exists.

These agencies have been elevated to heights that should not ascend; they have been chronically wrong and late in the past; and their rationale for a downgrade sounds more like a prim distaste for a dysfunctional political process that a reasoned assessment of the ability of the United States to discharge its obligations. No defense can be offered of our current political system or near-term economic prospects. But S&P—already on overreach as “neutral” judge of American creditworthiness—has no special standing to rule on the political system, and using that as a cudgel to prove their own power is a destructive act.

 

By: Zachary Karabell, The Daily Beast, August 6, 2011

August 7, 2011 Posted by | Congress, Conservatives, Consumers, Debt Ceiling, Debt Crisis, Deficits, Democracy, Economy, Federal Budget, GOP, Politics, Republicans, Right Wing, Teaparty | , , , , , , , , , , , , , , | Leave a comment

Speaker Boehner’s Folly Leads To Standard And Poor’s Downgrade Of US Debt

I’m no expert, but I don’t think S&P downgrading its rating of US debt will, as such, have any really big practical implications other than becoming the next political football. If you look at S&P’s definition of the AA rating, after all, it says:

“An obligation rated ‘AA’ differs from the highest-rated obligations only to a small degree. The obligor’s capacity to meet its financial commitment on the obligation is very strong.”

Scared yet? Me neither.

The issue today continues to be what it was a week ago. For years now, if you look at a projection from CBO or OMB it shows a spending curve that steadily accelerates. It accelerates because the government currently pays for health care for old people and for poor people, and because the cost of health care services has been accelerating.

Consequently, for a long time now it’s been clear that in the future either the US has to stop paying for old people’s health care, or else raise more revenue in taxes, or else reduce the growth in the price of health care services. And for a long time now it’s been unclear what combination of those strategies will be adopted. But people have generally had confidence that some combination of them would be adopted.

Once upon a time earlier in the Obama administration, I asked a senior official how he thought this would ever get resolved. A deal, everyone agreed, had to be bipartisan. But to be bipartisan, it would have to include tax increases. But Republicans wouldn’t vote for tax increases. He told me that of course that made sense, but at some point pressure from bond markets would be unbearable and Republicans would come to the table.

Broadly speaking, that’s the thing that most people generally believed would happen. What we saw with the debt ceiling was a mini-test of that theory, and the theory failed. “No new revenues” wasn’t just a GOP bargaining position, it turned out to be something they were really committed to even in the face of an imminent financial crisis. You can see why that would dent confidence in the long-term fiscal trajectory of the country.

The person who looks bad here, in my view, is John Boehner. President Obama wanted to do a “grand bargain.” The Gang of Six Senators wanted to do a “grand bargain.” And it looked for a moment like Speaker Boehner was going to be part of a grand bargain. But ultimately he decided that he didn’t want to sign a deal that would fracture his caucus, so the grand bargain talks fell apart. And yet the little bargain that did eventually pass the House ultimately couldn’t pass with Republican votes alone. So what did Boehner really achieve? If he was ultimately destined to strike a deal with the White House that needed Democratic votes to pass the House, why not go for the grand bargain? According to Boehner “When you look at this final agreement that we came to with the white House, I got 98 percent of what I wanted. I’m pretty happy.”

How happy is he now?

 

By: Matthew Yglesias, Think Progress, August 5, 2011

August 6, 2011 Posted by | Congress, Conservatives, Consumer Credit, Consumers, Debt Ceiling, Debt Crisis, Economic Recovery, Economy, GOP, Government, Health Care, Ideologues, Ideology, Lawmakers, Middle Class, Politics, President Obama, Republicans, Right Wing, Tax Loopholes, Taxes, Teaparty | , , , , , , , , , , | Leave a comment

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